AFM373 Lecture Notes - Lecture 5: Malcolm Baldrige National Quality Award, Total Quality Management, Profit Margin

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM373
• Professor: Alan Douglas

Document Summary

Fedex, founded by frederick smith, purchased the planes needed to transport packages, unlike its rival companies, which occupied the cargo space available on passenger airlines. In addition, fedex runs on hub-and-spoke distribution model, which resulted in cheaper and faster service to more locations than its competitors could offer. During the 1990s, fedex was proven to be an operational leader, winning the prestigious malcolm baldrige national quality award from the president of the. This success was not only due to its operational strategy, but also its philosophy of (cid:862)people-service-p(cid:396)ofit(cid:863), (cid:449)he(cid:396)e fede(cid:454) put e(cid:373)phasis o(cid:374) (cid:272)usto(cid:373)e(cid:396) se(cid:396)(cid:448)i(cid:272)e, total (cid:395)ualit(cid:455) (cid:373)a(cid:374)age(cid:373)e(cid:374)t, a(cid:374)d employee participation. Ups, on the other hand, was founded by jim casey in seattle, washington. In 1907, ups was the largest package-delivery company in the world. The company focused on department-store delivers until the 1940s. Ups also started an air-delivery service in 1929 by transporting packages on commercial passenger planes.